The Indian government has announced a significant extension of the export obligation (EO) period under the Advance Authorisation Scheme, increasing it from 6 months to 18 months. This move is aimed at providing much-needed relief to exporters of man-made fiber (MMF) textiles and technical textiles, especially in light of rising global trade pressures. The Ministry of Textiles emphasized that this extension will enhance ease of doing business and improve the competitiveness of Indian textile products.

The Advance Authorisation Scheme allows duty-free imports of raw materials for manufacturing export goods. With the new extension, exporters now have more time to fulfill their obligations without being constrained by the previously tight timeline. This is particularly beneficial for those dealing with products subject to mandatory quality norms under the Ministry of Chemicals, as it ensures uninterrupted access to critical inputs.

The decision gains further importance as Indian exporters face steep tariffs, up to 50%, imposed by the United States on certain goods. By relaxing the EO period, the government aims to cushion the impact of these external trade barriers and maintain the momentum of textile exports. The Ministry clarified that similar extensions had already been granted for quality control orders (QCOs) issued by the Textile Ministry, and this latest move aligns with that precedent.

Notably, around 18% of all Advance Authorisations are issued for the textile sector, underscoring the importance of this industry in India’s export landscape. The extended EO period is expected to boost confidence among exporters and help them navigate logistical and regulatory challenges more effectively. Overall, the initiative reflects the government’s commitment to supporting the textile industry and sustaining its global com